Mideast offers growth for global aluminium sector

dubai — The 20th Arab International Aluminium Conference (Arabal) has brought together more than 2,000 participants from 20 countries, and is highlighting key topics in the region’s aluminium industry such as value creation through energy efficiency, job creation and economic output.

This year’s Arabal event is being hosted by Emirates Global Aluminium (EGA) for the sixth time and will be held under the patronage of Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance. As a rapidly growing hub in the global aluminium industry, the Middle East region and its dynamics are of keen interest to players from across the world.

In 2015, the Middle East primary aluminium industry’s combined production was 5.59 million tonnes — almost 10 per cent of the total world production. As a result, all six primary aluminium producers generate substantial contributions to their respective nation’s GDP. By 2020, EGA’s contribution to the UAE GDP is forecast at about $3 billion direct and $5 billion indirect with gross exports of about $7 billion.

In the GCC, the aluminium industry provides direct employment to about 12,000 people and indirect employment to another 30,000 people. Efforts are focused on nationalisation by recruiting nationals, providing training and skills development opportunities and fast-tracking talented nationals into management positions.

The collective output of primary aluminium by the five GCC producers — Emirates Global Aluminium in UAE, Alba in Bahrain, Ma’aden Aluminium in Saudi Arabia, Qatalum in Qatar and Sohar Aluminium in Oman — stood at 5.27 million tonnes in 2015.

The conference outlined the direction of the market in a volatile oil price environment by examining the immediate and longterm impact of increased economic pressure on the Middle East, assessing the continued efforts in diversifying the economy and looking at alternatives to increase efficiency, productivity and opportunities for investment.

Abdulla Kalban, MD and CEO of EGA, noted that the Middle East offers immense growth opportunities for the global aluminium industry, especially as the sector already holds the position as one of the region’s key non-oil industries.

“The UAE’s primary aluminium smelters — EGA Jebel Ali and EGA Al Taweelah — are the anchor of industrial economic growth in the UAE. Together with the five other Middle East smelters in Bahrain, Oman, Qatar, Saudi Arabia and Egypt, the primary aluminium industry is the genesis of the broader industrialisation of the wider region,” he said.